Abhay Kumar Agarwal Vs ITO (ITAT Varanasi)
The Income Tax Appellate Tribunal (ITAT), Varanasi, decided the appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 25.07.2024 for Assessment Year 2010-11.
The assessee challenged the confirmation of multiple additions made by the Assessing Officer (AO) in reassessment proceedings under Sections 147 read with 143(3) of the Income-tax Act. The grounds of appeal primarily disputed the additions relating to alleged unexplained investments in mutual funds, outstanding liability appearing in the name of Mohan Banka, and disallowance of business expenses. The assessee contended that the investments in mutual funds were made by his elder brother, Shri Pradeep Kumar Agrawal, through the current account of M/s Shiv Enterprises maintained with Axis Bank Ltd. It was also stated that the proprietary concern belonged to the assessee’s elder brother, was registered under the Sales Tax Act/Commercial Tax Act during the relevant period, and that the maturity proceeds of the mutual fund investments were credited to a joint savings account of the assessee’s elder brother. The assessee further submitted that the balance sheet relied upon during assessment was based on incomplete and distorted facts and should not have been relied upon. The assessee also disputed the addition relating to the outstanding liability and the addition of ₹4,03,549 towards income and expenses allegedly relating to M/s Shiv Enterprises.
